VERY IMPORTANT...KNOW CONTROLS
List the various control plans from chapters 9-13, include the common plan name, a description of the plan, why and how the plan is expected to ensure the acheivment of the specific control goal(s). List the plans within each of the generic control goal categories listed below:
This document is a set of note cards (3x5) for al the control plans (including general control plans and those specific to the various processess reviewed). For study purposes.
Operational Effectiveness:
A measure of success in meeting one or more goals for the operations process.
- Automatic record input (effective and efficient): Strategy for the capture and entry of event-related data using technology such as OCR, bar codes, RFID, and EDI. This strategy uses fewer human resources, for example, reducing the entry errors humans make while manually entering information and capturing more data in a period of time than is possible with manual entry. By eliminating the keying errors that can occur in manual data entry, these methods improve the accuracy of the entered data.
- Automatic Updating - If the computer automatically updates, then this allows for more accurate information input and updating. The master data can be updated this way to allow for update accuracy.
- Customer Credit Check: The credit check is performed by ascertaining that the amount of the customer order (plus the amount of any open orders and the amount of any outstanding receivables balance) falls within the credit limit established by the credit department. If the request falls outside the limit, then the control terminates the sale.
- Confirm Accounts regularly
- Tickler File (effectiveness, input completeness, input accuracy, update completeness):a manual file fo documents, or a computer file, that contains business event data that is pending further action. These files should be reviewed on a regular basis. These files help the person or computer who is monitoring the activities see which activites are still pending and are in need of completion.
-Input close to originating source (effectiveness, input completeness, input accuracy):The fewer people involved in entering data and how data is being stored, can always create an effective control, and make sure that all that is being entered is complete and it accurate. An example to remember this is it's easier to enter what you want into a system knowing what you want, rather then tell a friend what you want and have them enter it in for you.
-Compare input data with master data (effectiveness, input validity, input accuracy):For data to be in the master file it should already have been checked and recorded with accuracy and validity. So when you compare the data being entered with that data it's easier and more reliable to see if the information is valid and accurate. Also by having the computer do this it increases effectiveness of the control.
- Well Designed Documents:
Easier to Input (effective, efficient, accurate)
Segregates resource from recording event
- Preformatted Screens:Control the entry of data by defining the acceptable format of each data field. For example, preformatted screens in a order entry/sales process simplifies the data entry process, allowing the CSR to enter orders more quickly, whcih leads to more timely acknowledgements and shipments and allows more orders to be input over a period of time.
- Use Turnaround Documents: Capture and Input subsequent event (effective, efficient, valid, accurate). Turnaround documents serve two purposes. They are used to:
(1) verify the accuracy and completeness of data that has been entered
(2) update data without re-entering
Examples: Picking tickets, inventory count sheets, and remittance advice stubs attached to customer invoices
Operational Efficiency (People, computers):
A measure of the productivity of the resources applied to achieve a set of goals.
- Automatic record input (effective and efficient)
- Automatic Updating
- Well Designed Documents
Easier to Input (effective, efficient, accurate)
Segregates resource from recording event
Physical Paper documents used in manual keying
- Use Turnaround Documents
Capture and Input subsequent event (effective, efficient, valid, accurate)
Operational Efficiency (Asset Resources / Data):
- Preformatted Screens - Easier to input (effective, efficient, accurate)
- Screens always look the same making it easier for clerk to input data, and also easier to assure data is recorded in proper location
Information Validity:
Input data are appropriately approved and represent actual economic events and objects.
- Independent Authorization
- Customer Credit Check
- Written Approval
- Calculate batch totals
- Independent Validation
Security of Resources:
Protecting an organization's resources fromloss, destruction, disclosure, copying, sale, or misuse.
Independent authorizations
- because cash can not be expended in the absence of validated, security over cash is enhance
Digital Signatures - Assure outside users of data that it is valid
Reconcile input - output batch totals
Information Completeness:
All valid events or objects are captured and entered into a system.
Easier to Input (Effective, Efficient, Accurate, Complete)
----
Information Accuracy:
All valid events must be correctly captured and entered into a system.
Easier to input (effective, efficient, accurate)
Less needs to be input (effective, efficient, accurate)
Comparisons between input and master can be made (validity, accuracy)
Accuracy
- Mathamatical accuracy checks
checks for mathamatical accuracy( extentions, footings, discount calculations) ----
Update Completeness:
All events entered into a system must be reflected in the respective master data.
(Secure, Valid, Input & Update Complete, Input and Update Accurate)
Control Matrix Control Plans:
VERY IMPORTANT...KNOW CONTROLS
List the various control plans from chapters 9-13, include the common plan name, a description of the plan, why and how the plan is expected to ensure the acheivment of the specific control goal(s). List the plans within each of the generic control goal categories listed below:
Operational Effectiveness:
A measure of success in meeting one or more goals for the operations process.- Automatic record input (effective and efficient): Strategy for the capture and entry of event-related data using technology such as OCR, bar codes, RFID, and EDI. This strategy uses fewer human resources, for example, reducing the entry errors humans make while manually entering information and capturing more data in a period of time than is possible with manual entry. By eliminating the keying errors that can occur in manual data entry, these methods improve the accuracy of the entered data.
- Automatic Updating - If the computer automatically updates, then this allows for more accurate information input and updating. The master data can be updated this way to allow for update accuracy.
- Customer Credit Check: The credit check is performed by ascertaining that the amount of the customer order (plus the amount of any open orders and the amount of any outstanding receivables balance) falls within the credit limit established by the credit department. If the request falls outside the limit, then the control terminates the sale.
- Confirm Accounts regularly
- Tickler File (effectiveness, input completeness, input accuracy, update completeness):a manual file fo documents, or a computer file, that contains business event data that is pending further action. These files should be reviewed on a regular basis. These files help the person or computer who is monitoring the activities see which activites are still pending and are in need of completion.
-Input close to originating source (effectiveness, input completeness, input accuracy):The fewer people involved in entering data and how data is being stored, can always create an effective control, and make sure that all that is being entered is complete and it accurate. An example to remember this is it's easier to enter what you want into a system knowing what you want, rather then tell a friend what you want and have them enter it in for you.
-Compare input data with master data (effectiveness, input validity, input accuracy):For data to be in the master file it should already have been checked and recorded with accuracy and validity. So when you compare the data being entered with that data it's easier and more reliable to see if the information is valid and accurate. Also by having the computer do this it increases effectiveness of the control.
- Well Designed Documents:
- Easier to Input (effective, efficient, accurate)
- Segregates resource from recording event
- Preformatted Screens:Control the entry of data by defining the acceptable format of each data field. For example, preformatted screens in a order entry/sales process simplifies the data entry process, allowing the CSR to enter orders more quickly, whcih leads to more timely acknowledgements and shipments and allows more orders to be input over a period of time.- Use Turnaround Documents: Capture and Input subsequent event (effective, efficient, valid, accurate). Turnaround documents serve two purposes. They are used to:
(1) verify the accuracy and completeness of data that has been entered
(2) update data without re-entering
Operational Efficiency (People, computers):
A measure of the productivity of the resources applied to achieve a set of goals.- Automatic record input (effective and efficient)
- Automatic Updating
- Well Designed Documents
- Easier to Input (effective, efficient, accurate)
- Segregates resource from recording event
- Physical Paper documents used in manual keying
- Use Turnaround DocumentsOperational Efficiency (Asset Resources / Data):
- Preformatted Screens - Easier to input (effective, efficient, accurate)- Screens always look the same making it easier for clerk to input data, and also easier to assure data is recorded in proper location
Information Validity:
Input data are appropriately approved and represent actual economic events and objects.- Independent Authorization
- Customer Credit Check
- Written Approval
- Calculate batch totals
- Independent Validation
Security of Resources:
Protecting an organization's resources fromloss, destruction, disclosure, copying, sale, or misuse.- because cash can not be expended in the absence of validated, security over cash is enhance
Information Completeness:
All valid events or objects are captured and entered into a system.----
Information Accuracy:
All valid events must be correctly captured and entered into a system.- Easier to input (effective, efficient, accurate)
- Less needs to be input (effective, efficient, accurate)
- Comparisons between input and master can be made (validity, accuracy)
- Accuracy
- Mathamatical accuracy checksUpdate Completeness:
All events entered into a system must be reflected in the respective master data.Update Accuracy:
Data entered into a system must be reflected correctly in the respective master data.